Coupa powers on with more investment and landmark Sanofi deal

Impressive results from Coupa last week and another fund-raising round that positions them well on their journey to spend management world domination. My colleague in the US, Thomas Kase, has written an excellent piece on the firm here following a chat with Rob Bernshteyn, Coupa’s CEO.

“Announced this morning, Coupa has added $40 million to their war chest via a Series F investment round led by Meritech Capital Partners ... The press release from Coupa highlights many impressive growth and customer retention statistics. The following, concerning Coupa platform transaction growth in 2013, are perhaps the most impressive:

Total spend amount through Coupa: 117% increase

Purchase orders processed: 103% increase

Invoices processed: 160% increase

Number of expense lines: 222% increase

Number of Coupa users: 82% increase

They achieved 100% revenue growth for the fifth year running, meaning as Thomas points out, the company is now over 30 times the size it was five years ago! And Europe now seems to be really getting into gear. It is tagged as a major growth area for 2014, and here is Bernshteyn again.

“… we’ve had really good success in Europe… we’re going to expand more within Europe [with] more customer support in Dublin, Ireland… we’re expanding in London, Paris, Germany, and the Nordics — sales, marketing and implementation expansion. We’re also expanding more into Latin America … we have success there with the Columbian government … We will start carefully with a move into APAC region – starting with Singapore.”

Also very significant is the news of a major and important contract win – Sanofi, the huge France-based international Pharma firm, the fourth largest in the world in their sector.

“…Sanofi, a global integrated healthcare leader with operations in more than 100 countries, has selected Coupa's cloud procurement software to replace its existing on-premise solutions and possibly roll it out in 85 countries.

Following an internal review of the company's procurement process and systems, Sanofi decided to transition to a cloud-based solution to support its new strategy: goal was to simplify and streamline their spend management process, and improve user experience. After an extensive internal assessment of the business and functional needs, a review of the technological environment and an evaluation of several vendors and potential partners, Sanofi selected Coupa.”

Not only is this a significant win given the sheer size and broad geographic aspect of the deal, but it is particularly satisfying for Coupa as they will replace an “existing on-premise solution.” Who could that be? As a clue, following a bit of simple Googling, let’s just say we worry a little for the job security of one Monsiuer Jolivet ... Seriously, I’m sure he will prove very adept at implementing the Coupa platform!

I spoke to Alex Kleiner briefly, who has led the Coupa sales effort in Europe and has been rewarded by a new role as General Manager, EMEA for the firm (congratulations to him). "We've won significant contracts where it has been a green field site in terms of eProcurement, but to win this one where it is replacing an existing solution is particularly pleasing", he said. He also confirmed that Coupa are recruiting actively in Europe "with some senior appointments likely in the short term", to support the growth here.

Globally, Coupa claims to be running in a cash-neutral fashion and hovering around breakeven now, which is also important as it moves from high growth but loss making into something more sustainable long term. Given the continuing uncertainties over the SAP - Ariba post acquisition positioning, things look good for Coupa. Although surely SAP-Ariba will get back on track at some stage, they will be looking nervously over their shoulders in more and more parts of the world by the sound of it.

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